Operating Lease

A contract that allows for the use of an asset, but does not convey rights of ownership of the asset. An operating lease is not capitalized; it is accounted for as a rental expense in what is known as “off balance sheet financing”.

Features and benefits of Operating Lease include:

Boosts cash flow by reducing your monthly payments (monthly rentals are based on the
depreciation of the vehicle, not the full purchase price)

Keeps your assets off your company balance sheet as the vehicle remains in the ownership
of the funder for the full term of the lease

Keeps running costs to a minimum, with lower monthly costs than hire purchase

Low deposit option and choice of fixed or variable interest options

Operating Lease is suitable for:

Single vehicle or fleet purchase

New or used vehicles

Bus, coach or mini-bus purchase

Particularly suited to businesses who want to keeps costs as a minimum